Oil and Gas, Vitol
Vitol, one of the largest commodity traders in the world, sold all of its Russian upstream assets a few months ago, the Forbes writes, citing a source, close to the deal.
"Last year, Vitol sold its projects in Russia," - said a source close to Vitol.
We are talking about Russian assets that were controlled by Vitol through Arawak Energy Russia and RF Energy Investments. The latter, according to SPARK, owned the company Recher-Komi (holds license for the North-Iraelskom oil field), Pechorneftegaz (the Sotchemyu field) and Kosyuneft (the Sotchemyu and East Turyshevskoye fields). "The fields are small, but are very compact and having good debit," - adds the source close to Vitol.
Gunvor Singapore Pte (in the structure of Gunvor) has attracted a $550 mln loan.
The credit line is opened by 2 tranches for 1 and 2 years. The loan will be spent by Gunvor to refinance another loan of $546.6 mln attracted in June 2014.
The organizers of the credit line were DBS Bank Ltd, ING Bank N.V. (Singapore Branch), Malayan Banking Berhad, (Singapore Branch), Oversea-Chinese Banking Corporation Limited, Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A., (Singapore Branch) as well as Societe Generale (Singapore Branch).
Gunvor is in the top-3 largest oil traders in the world along with Glencore and Vitol. The company was founded in 1997, registered in Switzerland. The revenue in 2012 made up $93 bln. Gunvor holds on the parity basis with NTMP a company “Novorossiysk grease oil terminal”. Gunvor also holds the oil products port at the terminal in Ust-Luga.
Trader will provide the company with prepayment in hard currency.
The Swiss trader Trafigura, who from April, according to unofficial data, will buy about 1 million tons of oil per month from the oil company, can become the largest trader of "Rosneft". According to "the Kommersant", the contract provides for advance payments, and under normal conditions for such contracts "Rosneft" can get almost $ 1 billion from the trader for the next six months. Cut out due to the sanctions from Western funding "Rosneft" needs funds to pay for off its debts.
The Swiss trader Trafigura is in talks with "Rosneft" to increase its purchases of crude oil from the oil company. According to Reuters, in April trader will start to export more than 1 million tons of "Rosneft" oil a month - nearly six times more than what Trafigura buys now. A source of "the Kommersant" in the market confirms this information, but adds that currently the contract is not concluded, the negotiations continue and the final volume of deliveries for the trader and delivery terms are not defined. "Rosneft" and Trafigura do not comment on the situation.
The Federal Antimonopoly Service (FAS) has offered to return to the idea of selling a part of oil and oil products, which are exported, for rubles, head of the agency Igor Artemyev reported to the Interfax. "We have now returned to this idea, because it is necessary to help the ruble," - he said. This idea was expressed a few years ago - and even the President’s message then spoke of the need to develop appropriate mechanisms, he recalls. However, that time the ruble was too fortified.
Sale of only 10% of raw materials for rubles would require buyers to purchase the Russian currency equivalent to about $15 billion, which is comparable with the intervention of the Central Bank, said Artemyev.
In July 2014, the USA introduced the sanctions against Rosneft having closed to the company the access to raising of the credits for a period of over 90 days. Due to lack of clarity in the definition about applying of the sanctions, the advance transactions of Rosneft with the traders can also be abandoned. To avoid the embargo, Rosneft and Vitol were going to found a special company.
Vitol negotiates with the international banks including Citigroup and Societe Generale about attraction of a 5-year credit for $2 billion for advance payment to Rosneft for its oil supply contract.
Rosneft’s liabilities for oil contracts’ advances doubled to 888.358 billion rubles. As on March 31 2014, Rosneft had long-term debts on the advances raised in the contracts for long-term oil supplies with China National United Oil Corporation, Glencore, Vitol and Trafigura. As on December 31 2013, the issuer had long-term debt of 470.151 billion rubles.
Rosneft negotiates with Vitol and BP about the new long-term contracts on a partially pre-paid basis. Vitol can provide advanced payment at a rate of $2 billion. Vitol and ВР refused to give any commentaries. Continuing the work on transition to the long-term contracts for oil and petrochemicals exports started in 2013, they elaborate 2 transactions now with the companies reputable as the reliable partners. The work on coordination of the main terms began in the end of 2013, and goes on simultaneously, with no preferences to any of the sides.
Rosneft may abandon the construction of an LNG plant in the region for Gazprom oil.
Large oil reserves of the South Kirinsk field on the Sakhalin shelf found in the past and the gas project "Sakhalin-1" may be subject to sharing of resources between "Gazprom" and "Rosneft". In the event of the deal, experts state, it can not only postpone the construction of Gazprom gas liquefaction plant in Primorye, but will also affect Rosneft’s plans to build an LNG plant on Sakhalin, reported IA SakhalinMedia referring to “The Vedomosti”.
Vetek signs contracts on supply products of Odessa refinery with leading international traders Vitol and TrafiguraEdited by Rhod Mackenzie / 2014-01-24 08:17:35
The main grade of crude oil, which is consumed by the Odessa refinery, is the Urals grade from the Shaskharis terminal in the port of Novorossiysk.
The international trading company Trafigura awaits the growth in Russian oil products yield by 13-15 million tons a year in 2013-2014, the President of Trafigura Eurasia, J. Kollek says at the conference Global Energy Intelligence Day in Moscow. Thus, within 2 years, oil refining will increase by 9%, oil supplies via the Russian transporting pipelines will increase by 19%, oil production in Russia will increase by 3%, and reserves will increase by 1%.
He emphasizes that the Russian ports use their transshipment capacities by only 75% , and Transneft export capacities are used by only 80%.